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This will actually reduce GDP.
"The corresponding real cuts directly reduce GDP.
Both policies will reduce GDP growth, they believe.
In this case each 1% of GDP of spending cuts would potentially reduce GDP by 2%.
Germany's shrinking workforce could reduce GDP growth by almost half a point.
In fact, that may reduce GDP because we use less fuel.
Similar(30)
A multiplier of 1.5, for instance, means that $1 in government-spending cuts reduces GDP by $1.50; a multiplier of 0.5 means a $1 cut in spending only reduces GDP by 50 cents.
It was estimated that carbon emissions would be cut annually by 1.2m tonnes at no cost to consumers and without reducing GDP.
But the economists find that, all else being equal, a 10% appreciation in the exchange rate reduces GDP growth by around one percentage point.
Here was an examination that appeared to prove that British-style austerity, replicated across Europe at the behest of the Germans, was reducing GDP and making governments borrow more money, not less.
This probably reduces GDP by about 3 percent, and reduces the deficit by only about 1 percent of GDP; meanwhile, if we believe in this relationship, it raises GDP a decade later by 0.23 percent.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com